In addition to being emotionally difficult, a divorce can also be financially damaging for both parties involved. In many cases, however, women specifically end up facing long term financial difficulties because of mistakes that were made during the divorce process. If you are involved with a divorce now, or fear you may have to go through one in the future, take a moment to review the following common mistakes so you can avoid them. (And be sure to speak to an experienced divorce lawyer!)
Failing to Require Insurance
When married, most couples have life insurance on the primary breadwinner to ensure the spouse and children are taken care of in the event that they pass away unexpectedly. In a divorce, women often get child support and sometimes alimony, but frequently do not require that life insurance be held on their ex. If you make this mistake and your ex passes away, you may be left in a very difficult financial situation with nowhere to turn. Since term life insurance is very inexpensive, it can often be added to a settlement without a problem.
Underestimating Financial Needs
When analyzing your financial situation during a divorce it can be very easy to overlook key expenses that you will have to pay after the divorce is final. Things like rent, taxes, health care and more all need to be accurately estimated. Sadly, many women don’t have a good estimate on how much they will need to pay all their bills, and find themselves struggling to make ends meet after the divorce is completed.
Trading Financial Settlements
One of the most common mistakes that women make is agreeing to trade away a portion of their financial rights in exchange for speeding up the process or getting a better child custody arrangement. While this can be tempting at the time, it is really making a long term sacrifice to solve a short term problem. It is much better to take the time to fight for what you are entitled to now so that you don’t have to struggle for years to come.
Thinking they can file for more later
A similar issue is that women will be willing to agree to a lower amount for child support, alimony or other payments thinking that they can file to have it raised down the road if necessary. The reality is, filing for an increase is not nearly as easy as most people expect and unless the income for the parties changes you may not be entitled to an increase. Getting a fair settlement up front is essential for your long term financial health.
If you are going through a divorce, or think you may be soon, give us a call today and let’s talk about your situation and your needs.